NEW YORK, June 13, 2013 - RBC Capital Markets, the corporate and investment banking division of Royal Bank of Canada, today announced that it has received a Notice of Allowance from the U.S. Patent and Trademark Office (USPTO) on its novel THOR® technology, a smart order router that significantly enhances investors' ability to access liquidity in the market and receive best execution.
The Patent Application (No. 13281486), "Synchronized Processing of Data by Networked Computing Systems" was allowed by the USPTO on RBC's THOR® technology, which covers the synchronized arrival of orders at multiple venues for all financially traded instruments. Unlike conventional order routing technologies - such as spray or serial routers - that send orders to multiple trading venues simultaneously or serially, and rely on speed of transmission, RBC's THOR® routing logic determines when orders should be sent to multiple exchanges so that simultaneous arrival can be achieved. This solves market structure challenges around latency arbitrage and disappearing liquidity. Through the use of THOR®, virtually all orders from investors are filled on a regular basis. The patent when granted (anticipated later this summer) will be valid until 2029.
"RBC continues to increase its technological and thought
leadership in identifying solutions for our clients,"
said Robert Grubert, Head of U.S. Equities at RBC Capital
Markets. "We developed THOR® because our clients
rely on RBC, as their broker, to develop solutions and strategies
that level the playing field on their behalf in today's complex
marketplace and achieve best execution. The allowance of a
patent by the USPTO is a testament to THOR's® ingenuity
Since the launch of THOR in 2010, RBC has consistently realized fill rates of 100 per cent or better, including reserve or hidden liquidity. RBC's performance statistics have been validated by QSG/Markit, an independent TCA provider, over the course of the last three years. In addition, RBC retained Grant Thornton LLP to conduct an independent audit of RBC's trade performance metrics, and it confirmed that the THOR® technology resulted in fill rates that far surpassed alternative smart order routing methodologies.
"Our clients benefit globally by THOR's® ability to mitigate the impact of certain predatory High Frequency Trading strategies which therefore reduces the cost of execution for our clients," said Greg Mills, RBC Capital Markets' Co-Head of Global Equities. "This patent underscores our dedication to develop proprietary solutions for challenges around latency arbitrage that investors and other market participants experience on a daily basis."
RBC's THOR® was launched in the U.S. in May 2010 and subsequently in the Canadian and European markets in September 2010 and August 2011 respectively. The U.S. patent application was first filed in December 2009. Corresponding patent applications have also been filed in other geographies including Canada, Australia and the European Union. RBC will continue protecting its intellectual property through the maintenance of its current patent and trademark applications as well as through future applications.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of the Royal Bank of Canada, the 4th largest bank in North America by market capitalization. RBC Capital Markets is a premier investment bank that provides a focused set of products, services and expertise to corporations, institutional investors and governments around the world. With over 6,500 professionals in 15 countries, we deliver our products and services to clients in over 100 countries through operations across North America, Europe and the Asia-Pacific region. For more information, please visit www.rbccm.com.
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For further information, please contact:
In the U.S.
Kait Conetta, RBC Capital Markets, 212-428-6409,
Gillian McArdle, RBC Capital Markets, 416-842-4231,
Louisa Fairman, RBC Capital Markets, 44-20-7029-7821,